SBP facilitates manufacturers in import advance payment

KARACHI: State Bank of Pakistan (SBP) has facilitated manufacturing sector in advance import payment by making changes to regulatory regime.

The SBP on Tuesday invited attention of banks to instructions issued vide EPD Circular Letter No. 01 of 2019 dated January 01, 2019 whereby import advance payment up to USD 10,000 per invoice was allowed for importers cum exporters for import of raw materials and spare parts for their own use only.

In order to facilitate the manufacturing sector, the above instructions have been modified.

“Henceforth, Authorized Dealers are allowed to effect advance payment up to USD 10,000, or equivalent thereof, per invoice on behalf of manufacturing concerns for import of raw materials and spare parts for their own use only.”

Authorized Dealers are advised to ensure meticulous compliance of above and other applicable regulatory instructions including those of Para 6 Chapter 2 of FE Manual, which require Authorized Dealers, among others, to satisfy themselves that the transactions will not involve and is not designed for the purpose of contravention or evasion of any of the provisions of the Foreign Exchange Regulations Act, 1947 or of any rules, directions or orders made thereunder.